A.P.RAVANI, J. - (1.)What is stolen property or property fraudulently obtained? Is it open to a Magistrate to direct that the muddamal property alleged to be stolen and/or fraudulently obtained be handed over to the person from whose custody it has been seized even when the police submits that the investigation is in progress and the same is not completed ? At any rate would it be proper for the learned Magistrate to resort to the provisions of Section 457 of the Criminal Procedure Code and order to hand over the muddamal property i.e. currency notes to the tune of Rs. 2 70 0 (Rupees two lakhs and seventy thou sand only) seized from the person at the interim stage even though he does not claim that the property belonged to him and that he has lawfully obtained the same ? The aforesaid questions arise in the background of the following facts:
(2.)That on September 23 1983 at about 10.35 a.m. opponent No. 1 got down from Saurashtra Janata Express at Rajkot railway station. On suspicion he was detained by the Railway Police. His person and other belongings with him were searched. It was found that he was in possession of currency notes to the tune of Rs. 2 70 0 (Rupees Two lakhs and Seventy thousand only). Therefore he was detained under the provisions of Section 41 (d) of the Criminal Procedure Code. In accordance with law the police took possession of the currency notes and certain other articles found from opponent No. 1
(3.)On the same day the police informed the Income Tax Authorities about the seizure of currency notes from opponent No. 1. The Income Tax Authorities under the relevant provisions of Income Tax Act requested the Railway Police that the amount in question may not be released without consultation of the Income Tax Officer Ward H Circle II Rajkot. The Income Tax Authorities recorded the statement of opponent No. 1 on September 23 1983 and were further investigating the matter.